Advantages and disadvantages Galderma reinforced its position as a leader in the global dermatology market.

The over-the-counter and aesthetic and corrective dermatology businesses delivered double- digit growth, while the strong growth of strategic brands in the prescription business was partially off-set by generic competition to mature products. Galderma continued to drive innovation, with 57 patents filed in 2012. (Nestle Annual Report 2012 p) Financial statement Joint ventures It is seen by the company as a market with a lot of potential, because 15 to 20% of European women are today regular consumers of nutritional supplements and because the rates of growth of this market range from 7 to 30% depending on the country (LOral Finance, 2002). The attractiveness of joint ventures is a function of both the revenue-enhancing and cost-reducing opportunities they provide the MNE. The problem of uncertainty can also be handled efficiently. In the new economy, strategic alliances enable business to gain competitive advantage through access to a partners resources, including markets, technologies, capital and people. Teaming up with others adds complementary resources and capabilities enabling participants to grow and expand more quickly and efficiently. Especially fast growing quick access to the market
Provide companies with the opportunity to gain new capacity and expertise Allow companies to enter related businesses or new geographic markets or gain new technological knowledge access to greater resources, including specialised staff and technology sharing of risks with a venture partner Joint ventures can be flexible. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting both your commitment and the business' exposure. In the era of divestiture and consolidation, JVs offer a creative way for companies to exit from non-core businesses. Companies can gradually separate a business from the rest of the organisation, and eventually, sell it to the other parent company. Roughly 80% of all joint ventures end in a sale by one partner to the other. The Disadvantages of Joint Ventures It takes time and effort to build the right relationship and partnering with another business can be challenging. Problems are likely to arise if:

The objectives of the venture are not 100 per cent clear and communicated to everyone involved. There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners. Different cultures and management styles result in poor integration and cooperation. The partners don't provide enough leadership and support in the early stages. Success in a joint venture depends on thorough research and analysis of the objectives.